Summary
- Marathon Digital Holdings announces proposed private offering of $250 million of convertible senior notes.
- The proceeds will be mainly used to buy more Bitcoin.
According to an official press release, Marathon Digital Holdings (MARA) announced its plans to offer $250 million of convertible senior notes due 2031 in a private offering to institutional buyers.
According to the official notes, MARA expects to grant the initial purchasers of the notes an option to purchase up to an additional $37.5 million aggregate principal amount of the notes.
The offering is subject to market and other conditions, and there can be no assurance as to whether, when, or on what terms the offering may be completed.
MARA Notes Set to Mature on September 1, 2031
The official press release says that the notes will be insecure, senior obligations of MARA, and will bear interest payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2025.
The notes will mature on September 1, 2031, unless earlier repurchased, redeemed, or converted in accordance with the official terms. Here are more important details to remember:
- MARA may redeem for cash all or any portion of the notes on or after September 6, 2028.
- If MARA redeemed fewer than all the outstanding notes, at least $75 million aggregate principal amount of notes must be outstanding.
- Notes holders will have the right to require MARA to repurchase for cash all or any portion of the notes on March 1, 2029.
- The notes will be convertible into cash, shares of MARA’s common stock, or a combination of cash and shares of common stocks.
- Before March 1, 2031, the notes will be convertible only upon the occurrence of certain events and during certain periods.
Acquiring More Bitcoin
The same official notes reveal that MARA intends to use the net proceeds from the sale of the notes to buy more Bitcoin and for general corporate purposes, including the following:
- Working capital
- Strategic acquisitions
- Expansion of existing assets
- Repayment of debt and other outstanding obligations
The notes will be offered and sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act, according to the official press release.
Via a post on X, MARA Chairman, Fred Thiel, announced plans to buy more Bitcoin, referring Michael Saylor.
Getting ready to buy more BTC @saylor https://t.co/Q3Ts1tT0oi
— Fred Thiel (@fgthiel) August 12, 2024
MARA is a global leader in leveraging digital asset computing to support the energy transformation.
